DTN Daily Basis Comments

Friday Morning Basis Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DAILY BASIS AND CASH INDEX SUMMARY:

The national average basis for corn was 1 cent stronger at 24 cents under the July futures contract while the DTN National Corn Index was up 7 cents at $3.03. The national average basis for soybeans was 1 cent stronger at 45 cents under the July futures contract while the DTN National Soybean Index was down 1 cent at $8.02. The national average basis for HRW wheat was 1 cent stronger at 24 cents under the July futures contract while the DTN National Hard Red Winter Wheat Index was up 13 cents at $4.40. The national average basis for HRS wheat was unchanged at 25 cents under the July futures contract while the DTN National Hard Red Spring Wheat Index was up 6 cents at $4.94.

DTN Cash Change From National Contract Change from
Commodity Index Prev Day Avg. Basis Month Prev Day
Corn: $3.03 $0.07 -$0.24 Jul $0.000
Soybeans: $8.02 -$0.01 -$0.45 Jul $0.004
SRW Wheat: $4.94 $0.10 -$0.21 Jul -$0.001
HRW Wheat: $4.40 $0.13 -$0.24 Jul $0.008
HRS Wheat: $4.94 $0.06 -$0.25 Jul -$0.001

CORN:

CORN: The national average corn basis for Thursday is at 24 cents under the July futures, 1 cent stronger than Wednesday's basis. July corn surged higher Thursday, closing up 7 cents as the EIA news was a good sign for returning corn demand. As ethanol plants continue to ramp up production, more corn will be needed to feed those plants. However, they will need some help from the farmers and so far there isn't a large amount of selling happening. The latest government payment and continued fieldwork through the Midwest are keeping farmers from moving cash corn to market. The feed demand side of corn remains flat, partially due to the normal lower seasonal demand as feeders don't use as many feed ingredients during the hot, summer months. The shuttle basis delivered to the Pacific Northwest was 2 cents weaker for June and CIF NOLA basis was 3 cents weaker. River basis was weaker as demand is slow. Barge freight is cheap and there are still plenty of empty barges parked in areas of the river.

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SOYBEANS:

SOYBEANS: The national average soybean basis for Thursday is at 45 cents under the July futures, 1 cent stronger than Wednesday's basis. July soybeans closed down 1 1/2 cents as tensions between China and the U.S. continue to rise. Adding to the tensions was a decision by China to implement a controversial national security law in Hong Kong. Soybean meal made a comeback as soybean oil moved lower. With Brazil soybeans remaining below U.S. prices, our export picture continues to look bleak. The track PNW basis did show some strength on the back of recent export business announced, with basis up 2 cents for May and June. Secondary shuttle freight is showing no bids for June, with offers at minus $75 per car below tariff for first half June and minus $125 for last half June.

SOFT RED WINTER WHEAT:

The national average SRW wheat basis for Thursday is at 21 cents under the Chicago July futures, unchanged from Wednesday’s basis.

HARD RED WINTER WHEAT:

The national average HRW wheat basis for Thursday is at 24 cents under the Kansas City July futures, 1 cent stronger than Wednesday’s basis. The cash price got a boost Thursday with the July contract closing up 12 1/4 cents. Support came from the lower U.S. dollar and the strength in the corn futures, along with some of the crop conditions in the EU reported slightly lower the past week. The KC spot market protein premiums were mixed with ordinary proteins 2 cents stronger, 11% protein 1 cent weaker and 11.2% 2 cents weaker.

HARD RED SPRING WHEAT:

The national average HRS wheat basis for Thursday is at 25 cents under the Minneapolis July futures, unchanged from Wednesday’s basis. The Minneapolis spot spring wheat cash market closed as follows, basis the Minneapolis July futures contract for No. 1 milling quality: 12% proteins were not quoted; 13% proteins were not quoted; 13.5% proteins were not quoted; 14% proteins were unchanged at +140N; 14.5% proteins were at +130 and 15% proteins were unchanged to down 10 cents at +150. Receipts were 15 cars, which includes zero trains.* (Bid=B Ask=A Nominal=N) Wheat on the MGEX floor is traded delivered Chicago/beyond.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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Mary Kennedy

Mary Kennedy
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